Decentralized identifiers (DID) are a form if identification issued in a decentralized manner that can be used to prove or verify individual identity. Developers use cryptography to prove control over the identifier. The World Wide Web Consortium approved DIDs in November 2019.

How DIDs Work

A DID document can use cryptographic methods, verification methods, or services to control the DID. In cases where the DID subject is an information resource, such as a data model, a service might allow trusted interaction with the subject. A service might also provide a way to return the DID subject itself.

This document specifies the DID syntax, a standard data model, core properties, serialized representations, DID operations, and an explanation of the process of resolving DIDs to the resources that they represent.

On the other hand, A DID method refers to creating, reading, updating, and deactivating a DID and its associated DID Document in a specific distributed ledger or network. DIDs and DID Documents are only the first steps to creating a decentralized identity system describing their subjects. The remaining descriptive power comes from collecting and selectively using verifiable claims.

Benefits of a DID

The Decentralized Identifier is a global, persistent, and unique identifier. In this way, developers can create peer-to-peer connections that are private, secure, and unique.

Credentials are always available for verification because of their decentralized nature.
An individual or organization can set up as many different DIDs as they wish. Data correlation is prevented by using different DIDs for digital relationships and contexts.
The identity owner has complete control over them. Unlike centralized registries, authorities, or identity providers, DIDs are independent.